Retirement Needs Analysis

Question 1

What do most practitioners estimate is the income that persons need in retirement?

Answer 1

Many practitioners estimate that retirees may only require income equal to 70% to 80% of their pre-retirement income.

Question 2

Below are some of the reasons that 70% to 80% of current living expenses are usually adequate:

Answer 2

Work-related expenses could drop considerably.

Not contributing toward saving for retirement, such as through 401(K) plans.

Not paying payroll taxes (7.65%) on the money that you are receiving.

A mortgage could be paid off.

Children may be independent.